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R3V Facilitator Update – Week 6 2022 – Aligning Efforts

We’ve been a bit quiet, but we’ve been busy so far this year!

In December, the R3V steering committee decided to explore supporting the LTRG executive director, Caryn Wheeler-Clay, as she builds what will be a key organization in our recovery from the Alameda and Obenchain fires as well as our resiliency from any potential future challenges.  

Backbone Organization

To step into the work of exploring how we might support Caryn and the LTRG, we had a series of meetings with the LTRG executive committee and full board  to discuss in detail how we can support their efforts.  

I now meet three times per week with Caryn to support her work and help build the organization.  Together, we are working through the details of hiring, the grant writing function, meetings and rationalizing committee structures, board strategic planning, IT infrastructure, and community relationship building.

We have contracted with Sequoia Consulting to begin grant prospecting for the LTRG.  This will be invaluable support for Caryn and her teams’ work in the coming months and years. We think OCF for allowing us to use the community rebuilding funds they made available to R3V in a way that will support the recovery of our community.

Housing

The R3V project work on land availability for housing continues as I reach out to the leaders of similar land campaigns in Colorado and California. We already have one deal in the preliminary contract stage and are in discussions with a local institution about their excess land and how we might support converting some of that into housing.

Community Rebuilding

Carrie Turney-Ross of the Jackson County Library System facilitated our last Spanish adult literacy conversation and has agreed to lead the program forward.

Our support of the Zone Captains program continues in a variety of ways and now includes community leadership training, see the course outline here.

Please reach out if you have any thoughts on how we might support the recovery further,

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R3V Collective Impact Meeting Notes – Land Availability for Housing – January 19, 2022

This week we had a panel discussion how we as a community might help support more attainable and affordable housing development by identifying land that might be made available for socially-purposeful building.

Our panelists included

  • Greg Holmes, 1000 Friends
  • Margaret Van Vliet, Trillium Advisors
  • Jason Elzy, JCHA
  • Anne Marie Alfrey, RVCOG
  • Daryn Murphy, Developer
  • Josh LeBombard, DLCD

The questions addressed

  1. The challenge with land availability – JCHA, urban renewal agencies, developers
  2. Other communities – How do others solve for land availability?
    1. Portland Surplus City Property
    2. Eugene buys suitable land and banks it – summary here
    3. Genesee County Land Bank, MI – buys all tax lien properties
  3. Community involvement – How can various sectors and citizens support the project?
    1. Identify possible lots and their owners to project leads
    2. Encourage owners to discuss the possibility of making their land available
  4. Who leads – What team should lead the project to develop a land bank or list?
    1. RVCOG, urban renewal agencies, SOREDI, LTRG, or ?
  5. Securing land – What form of transaction could work? Right of first refusal? Land lease? Fee simple? Cities leasing surplus land
  6. Housing as infrastructure – What would be different if we thought of housing as community infrastructure? An expert, Jacqueline Waggoner and her testimony
    1. Investment?
    2. Maintenance?

Our key takeaways were:

  1. The challenge
    1. Because buildable, well-located land is so valuable, it’s important to find sellers who have a patient, community-oriented approach to making it available for affordable and attainable housing development.
    2. Medford has done a good job of rezoning to support housing and inventorying their unbuilt lands.  Other cities can still do that work.
    3. Daryn Murphy: In a market like Jackson county and all over the state, for that matter, a lot of property owners don’t want to wait that that timeline out so you’re hopeful that, when you initiate conversations with a property owner that they have a an altruistic  mindset and maybe you can convince them that this is the right thing to do, and that waiting is going to be beneficial to the Community, but not everybody unfortunately has that has that outlook so it’s it’s often very challenging to get owners to to cooperate.
    4. Actions underway
    5. Commercial and religiously zoned lands can now be used for affordable housing development.  For attainable housing too?  A policy update?
    6. HB 2001 aims to make more missing middle by upzoning all single family lots to multifamily, ADUs.
    7. HB20918 – inventory all surplus lands made publicly available.
    8. Medford has annexed some urban reserves to add more land for housing
  2. Other communities
    1.  Margaret: Sonoma County created a Council of Infill Builders and coordinated what the jurisdictions could offannexing some urban reserveser in terms of land and incentives to build housing.
    2. In Colorado the Congregation Land Campaign worked to inventory and make available faith-based organization’s land for housing.
  3. Community involvement
    1. Could we look at how we could offer landowners a capital gains tax credit if they sell to an affordable housing developer?  Could the state offer a credit equal to the federal capital gains tax on the sale?
    2. How to incorporate and finance utilities to marginal agricultural lands that could be repurposed to housing?
  4. Who leads
    1. Should be a nonprofit organization, not a government agency.
    2. Outreach to landowners is the key to success
  5. Securing land
    1. Purchase is often best for everyone, but leases can work
    2. Leases create an issue with lien seniority for lenders and the lessor.  Can we find models for how this can work and statistics on the true scope of the issue?
  6. Housing as infrastructure
    1. How to include this and the related systems development work into the jurisdictions’ capital improvement planning processes?  Without tying to this, there’s no funding for housing as infrastructure.
    2. How to create prohousing community understandings that stable housing lowers healthcare and law enforcement costs.  Housing is far less expensive than prison and ER visits.  Educate the public on social determinants of health.
    3. We need more innovation around housing product types – smaller, built offsite, more density – and around finance – how public investment can set the table for private investment (systems development, land acquisition and entitlements, low income tax credit, public assumption of some risks that cause lenders to increase rates, appraisal practices to support innovation rather than hinder it because of the “no comps” problem.
  1. What can we do now?
    1. LTRG/R3V Housing Working Group to host a conversation around which organizations might hold this effort.  SOREDI?  LTRG? UnitedWay? Cascade Builders’ Association?
    2. Design what structures and processes will be required to do this work in consultation with the Congregation Land Campaign
    3. Support LTRG in hiring a dedicated housing advocate who can lead this effort.
    4. Begin outreach via our community connections to faith and fraternal organizations. Mapping suitable lots and reaching out to owners, etc.
    5. Experiment and learn to build a process that really works.

Thanks to all who participated!

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Essentials of Land Leasing for Owners

Why lease out your land? 

The challenge is that we are very short on housing for working families.  One reason is that when land becomes available private developers often focus on the “highest and best use” which around here often means building $400,000 condos for retirees.

The problem is that our essential workers, in healthcare, education, public safety, and manufacturing, cannot find affordable housing.  This limits everyone’s ability to prosper in our fair valley, employees have a hard time saving or take jobs elsewhere while employers struggle to hire the staff they need.

We have lots of land, but many landowners (families, churches, fraternal organizations, and businesses) do not want to sell their land even if they don’t want to develop it in the near future.  Leasing lets the owner own and a developer build with lower upfront costs.

Benefits to the landowner

  • Retain ownership and future appreciation of land
  • Regular income
  • Avoid capital gains that a sale might trigger
  • Little to no upfront costs to create cash flow
  • Can support the community by making land available for a great cause

Benefits to the community

  • More housing faster with lower upfront costs
  • Secures the land for the life of the building
  • More people willing to lease than to sell
  • Prime locations become more accessible – walkability and transit are key

How does it work?

  • Most land leases are quite straightforward and last 60+ years
  • Owner agrees to allow the developer to use the property to build and operate housing for upto 99 years
  • All zoning rules and regular escrow processes are followed

Land Lease Essentials

Ground leases have been particularly popular in Hawaii and in Agriculture

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Accessory Dwelling Unit

What is an ADU?

ADU is short for Accessory Dwelling Unit.  It can be accessory to detached single-family homes, townhouses, manufactured homes and duplex dwellings on their own lot.

Examples of ADU’s

Jump to your town’s ADU rules: MedfordPhoenixTalentAshland Central PointJackson County

If you are a professional homebuilder, see this set of ideas.

Why ADUs are important for you and your community

  • Creates more housing density at lower costs within the Urban Growth Boundaries that maintain our wide open spaces for ag and wildlife.  
  • Serves people and places according to AARP by creating attainable housing for elders and people starting out.
  • Supports aging in place, generational wealth building, and housing for extended family or friends.
  • Adds affordable “missing middle” housing options in a moment of critical shortage/ opportunity.  Missing middle is everything from ADUs to 8 unit complexes. 
  • Generates income – what does a 1 bedroom unit rent for in your area?
  • Increases property values 25% to 34%. A 2012  study from Portland.
  • Accelerates mortgage payoff at a time when 24% of Oregon homeowners are mortgage burdened and of that 9% are severely cost burdened- Oregon Center for Public Policy
  • Reduces the need for cars and increases walking, biking, and transit use.

How an ADU could work for you

  • ADUs are extremely valuable when it’s time to sell your home. 
    • Studies show that ADUs can increase property values and make homes more desirable to potential buyers, especially those interested in aging-in-place.
  • Estimate your gains using this handy calculator.  Scroll down the calculator to adjust assumptions. Or try this calculator.

Here’s Derek Sherrell, local ADU developer who offers a lot of great advice and encouragement to anyone interested in ADUs. 

See more tips from Derek, That ADU Guy, on YouTube and on his website.

Pre-approved ADU Plans

Here’s Carlos Delgado, the architect who designed the ADU plans pre approved in the city of Medford talking about his approach to ADUs.

When ADUs might not work

  • Zoning  restrictions – most single family lots can now include an ADU
  • Not enough space on your lot – buildable area of your lot, set backs, etc.
  • Access to utilities is expensive – is there enough slope for the sewer line?
  • Upfront costs of planning and permits
  • Financing ADU’s can be tricky – check with your banker
  • The form of your existing house  may not make an attached ADU easy – attached ADU example

Check with your local community development staff before you give up on the ADU idea. More info below

How to get started

Here’s Kristen Maze, Director of Community Development at the City of Talent helping you think about preparing to apply for permits to build an ADU.

Trying to Make the Complex Simpler

This process is NOT simple. We are trying to help you get started, but know that there are many options and potential roadblocks along the way.  But, as Derek says, the hard work is definitely worth it!

Lots of good materials on these websites:

A Few Key Details About ADUs In Your Area

This is only a few key pieces of a much larger puzzle.  Check with your local planning department, their contact information is at the top of this table. On your phone, click on the phone number to dial it.

Click to jump to your town: MedfordPhoenixTalentCentral PointJackson County

Ashland

Planning department contact information

ADUs are allowed in zones

R-1, R-1-3.5, RR, WR, R-2, R-3, NN, NM

Setbacks and coverage ratios

Set back and coverage ratios vary for different zones. Find the requirements for your zone here.

Other rules

Just a start here, look at more info links for the complete picture

Off-street parking is NOT required

Accessory Residential Units (ARU) and in the Single-Family Residential Zones (R-1-5/R-1-7.5 & R-1-10) ARUs require a Conditional Use Permit.

More info here

Link to building permits

Permits, Forms, & Fees

Central Point

Planning department contact information

541-664-3321

stephanie.holtey@centralpointoregon.gov

ADUs are allowed in zones

R-L, R-1, R-2
LMR, MMR, HM

Setbacks and coverage ratios

Rear Yard Setback: 5 ft
800 sq ft or 50% of the gross floor area of the primary dwelling, whichever is less

Other rules

– just a start here, look at more info links for the complete picture

Off street parking is NOT required.
Separate utility connections are not required

More info here

Link to building permits

Permits

Medford

Planning department contact information

541-774-2380

planning@cityofmedford.org

ADUs are allowed in zones

MFR-30, MFR-20, MFR-15, SFR-10, SFR-6, SFR-4, SFR-2

Setbacks and coverage ratios

Up to 75% of the primary dwelling’s Gross Habitable Floor Area (GHFA)
Detached ADUs cannot be larger than 900 sq. ft.; attached ADUs converted from existing space in the primary home cannot be larger than 50% of the primary dwelling

Other rules

– just a start here, look at more info links for the complete picture

Off street parking is NOT required

More Info here

Link to building permits

Applying for a permit
ADU Fee Waiver

Phoenix

Planning department contact information

ADUs are allowed in zones

R-1

Setbacks and coverage ratios

Maximum lot coverage 40%
Minimum lot size 6,000sqft

Other rules

– just a start here, look at more info links for the complete picture

Off street parking is NOT required

More info here

Link to building permits

Building permit information here

Talent

Planning department contact information

ADUs are allowed in zones

RLD, RMD, RHD, RMH, CN

Setbacks and coverage ratios

Not to exceed 800 square feet of floor area, or 75 percent of the primary dwelling’s floor area, whichever is smaller.

Other rules

– just a start here, look at more info links for the complete picture

Off street parking is NOT required
More info here

Link to building permits

Permits

Jackson County

Planning department contact information

ADUs are allowed in zones

Unlikely outside the UGB, White City allows ADUs.

Rural areas are unlikely to allow ADUs. That is under review in the state wildfire risk map that is to be completed in Fall 2022.

Depends on your zoning because the County considers an ADU a separate dwelling on the lot.

See question 2 in their FAQs

Setbacks and coverage ratios

Depends on your zoning.

Other rules

Consult with planners at the County.

Link to building permits

Checklist

Permits

Fees

How to finance your ADU construction

  • Local banks you currently work with – equity line of credit, cash out refinance, etc.
  • Craft3 ADU finance program
  • In Portland, some developers who lease your land and build an ADU for you
  • There is a lot of useful data around cost assumptions and financing options in this document from Santa Cruz County in California.  Of course, our fees are different, but many of the construction cost estimates, financing options, etc. are still useful.

Oregon State ADU Code

Oregon Statue on Accessory Dwelling Units in Rural Residential Areas

ADUs are an important way to fill in the missing middle in our housing supply.

A fun tiny house village in Portland. h/t buildinganadu.com

What Home Builders Can Do to Simplify Later ADU Development

Professional home builders can make ADU development much easier by planning ahead. This video offers a few good ideas.

One creative idea for affordable homes with ADUs is for builders to build the ADU first and sell the large lot with its approved larger home site left for future development.  This allows buyers to get started on homeownership more easily while they can look forward to building their larger home once they have built equity in their starter home.

Other Ways to Encourage Missing Middle Development

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R3V Facilitator Update – Week 50

The Miracle Of You, Working

We’ve talked a lot about reimagining and building back better.

For me, the blessing of this last year has been that you are reimagining and rebuilding what it means to be in community, here in the Rogue Valley, starting in your own heart.

You faced flames, ruins, and sadness and still find that place in your heart that reaches towards hope, that place in your mind that sees a new way forward; you amaze me.

I am encouraged by each of you who:

  • Knock on the door of a FEMA trailer to find out about a person’s needs
  • Answer the phones when traumatized, frustrated fire survivors call for help, again
  • Deliver meal kits to families still living in hotels
  • Search for the way to improve the process when trauma turns to anger at the overburdened systems of support and recovery

The rebuilding process is slow, but you are doing it. You are looking for ways to reach out, to step up, to meet needs, to bring an ounce of cheer into a sea of challenge and pain.

I am honored to be with you in this process of reimagining and rebuilding ourselves, as a community.

Thank you for including R3V in your work.

Updates and Other Good News

And, of course, our work in the community continues, see our final dashboard of the year here.  

Thanks to the Community Rebuilding Fund, a partnership between Oregon Community Foundation, Meyer Memorial Trust, The Ford Family Foundation and The American Red Cross, with primary funding through individual donations and corporate and foundation support, for making our work possible.

Additionally, please take a moment to complete this survey on community resilience by Rogue Climate.  

Also, I’ve had the honor of facilitating a couple of meetings with local and state housing experts in support of the NewSpirit housing project.  Learn more about the project in a great MailTribune article here and on KOBI5 news here.

But wait, please help promote these great job opportunities at our partner, ACCESS.  

Finally, The Ford Family Foundation has recently released Oregon By The Numbers report that contains a lot of data that may be helpful in strategic planning and grant applications for your organization. 

Phew, enjoy your holiday celebrations!